UMH Properties Expands Its Fannie Mae Credit Facility
UMH Properties, Inc. (NYSE: UMH), a prominent player in the real estate investment trust (REIT) sector, has recently announced a significant enhancement to its Fannie Mae credit facility. This move marks a pivotal moment for the company as it aims to strengthen its financial base and expand its footprint in the affordable housing market.
Financial Details of the New Credit Facility
On May 15, 2025, the company successfully added ten manufactured home communities to its existing credit portfolio. These communities encompass a total of 2,001 home sites, with the financing amounting to approximately $101.4 million. This interest-only loan, secured through Wells Fargo Bank, features a competitive fixed interest rate of 5.855% and is structured with a ten-year term. The funds acquired will support further investments in additional acquisitions, campus expansions, the development of rental homes, and the refinancing of higher-interest debt, enhancing financial agility.
Comments from Leadership
Samuel A. Landy, President and CEO, expressed pride in the completion of this strategic addition to their credit facility. He emphasized the significance of the refinancing by noting that a certified appraisal determined these ten communities to have a collective valuation of $163.5 million, which translates to $82,000 per site. With an initial investment of around $66.6 million, the company's communities have seen an impressive value increase of $96.9 million, equating to a remarkable 146% rise from their original cost basis.
Value Creation and Future Plans
Landy also praised the efforts of the UMH team and its lending partners at Wells Fargo and Fannie Mae for facilitating this transaction. The aim is to deploy the newly acquired capital efficiently in order to extend affordable housing across the nation, which is not only a crucial need but also expected to yield substantial long-term results for shareholders. The company’s commitment to developing value-added communities, implementing necessary improvements, and enhancing occupancy rates through effective sales and rental programs is fundamental to generating significant property-level value.
About UMH Properties, Inc.
Founded in 1968, UMH Properties, Inc. has established itself as a key player in the manufactured housing sector. This public equity REIT operates 141 manufactured home communities, which collectively feature about 26,500 developed homesites, of which 10,400 are designated for rental occupancy. The company also oversees more than 1,000 self-storage units. While the company has a diverse presence across various states, it has important operations within New Jersey, New York, Ohio, Pennsylvania, and beyond. As part of its portfolio, UMH has a stake in two Florida communities, comprising 363 sites, operated through a joint venture with Nuveen Real Estate.
Contact Information:
Nelli Madden
732-577-4062
Frequently Asked Questions
What is the purpose of UMH Properties' new credit facility?
The new credit facility is aimed at acquiring additional properties, expanding existing communities, and refinancing higher-interest debts.
How much funding did UMH Properties secure from Fannie Mae?
UMH secured approximately $101.4 million through the addition of ten communities to its credit facility.
Who comments on the company’s accomplishments regarding the credit facility?
Samuel A. Landy, the President and CEO of UMH Properties, made remarks regarding the completion and significance of this financing.
What are the financial details of the new loan?
The credit facility features a fixed interest rate of 5.855% and is structured as an interest-only loan for a ten-year term.
What is the history of UMH Properties, Inc.?
UMH Properties, Inc. has been operating since 1968 and has grown to manage 141 communities, emphasizing affordability and value in housing.
